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Report
en_GB
UK consumer spending grew by an estimated 4.6% in 2025, to £1.9 trillion. Growth remains predominantly driven by inflation, and consumers continue to take a cautious approach to discretionary purchasing.
UK
Retail
Beauty and Personal Care
Clothing and Fashion
Foodservice
Household
Insurance
Leisure and Entertainment
Technology
Travel
simple
British Lifestyles: 2026
"Brits are more in touch than ever before but crave analogue experiences amid a perceived overreliance on tech. Brands that help balance 'real' connections with the benefits of digital innovation will hold mass appeal."
Rich Shepherd, Associate Principal - Consumer Insights
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EXECUTIVE SUMMARY
What you need to know
Outlook for British Lifestyles
Opportunities
Promote real connections
Community hubs create opportunities for belonging and brand building
AI implementation requires a balanced approach
THE MARKET
Total consumer spending market size and forecast
Consumer spending set for steady growth over the next five years
Graph 1: total UK consumer spending (£ billions) and forecast, 2019-30
Total consumer spending at current and constant prices, 2019-30
High cost of essentials maintains pressure on discretionary spending
Graph 2: estimated consumer spending, by category, 2025
Predicted growth in holidays and foodservice reflects strong desire for social experiences
Graph 3: estimated percentage change in consumer spending, by category, 2024-25
Graph 4: forecast percentage change in consumer spending, by category, 2025-30
The economy
Waves of uncertainty are holding back the UK economy
Graph 5: quarterly change in GDP, Q1 2021-Q4 2025
Value will remain the key feature as Brits navigate another income squeeze
Graph 6: CPI and average wage rises, 2021-26
Further interest rate cuts are dependent on improvements in the inflation outlook
The changing nature of work and higher costs have driven youth unemployment…
Graph 7: unemployment rate, by age, 2021-26
… but existing employees are generally confident in their roles
Graph 8: perceived job security, by generation, 2026
Household finances
The mean full-time salary in the UK is around £50,000
The ageing population will increase focus on long-term care
Graph 17: median age of the population, 1996-2066
Graph 18: population, by age, 2026-66
Brits are living with parents longer, and having their own kids later
Graph 19: percentage of young people living with parents, by age, 1996-2024
Graph 20: standardised mean age of parents, all births, 1984-2024
The polycrisis is weighing on British consumers’ minds
Graph 21: consumer concerns, 2026
THE CONSUMER
Loneliness
More connected than ever, but many still feel alone
Three quarters of Brits have experienced loneliness
Community hubs can offer low-cost social contact
Remote work carries an inherent risk of loneliness
Modern working routines require considered social support
Graph 22: experience of loneliness, by work location, 2026
Digital spaces are redefining friendships and belonging
There’s still no replacement for the real thing
Belonging
Strong support networks underpin a sense of belonging
Focus on serving personal celebrations to capitalise on consumers’ sense of belonging
Bring people together, whatever the occasion
Modern festivals face a choice in who they want to serve
Graph 23: people who feel a sense of belonging from festivals, by age, 2026
Support community groups to win local affection
Graph 24: what makes people feel a sense of belonging, by age and gender, 2026
Cultural discussion
The national conversation is centred on personal, everyday topics
Graph 25: what people talk about, 2026
Most Brits reject the idea that they live in an echo chamber…
… but conflict avoidance is restricting open debate
Encourage conversations about beauty and ageing
Graph 26: who people talk to about beauty and personal care, by age, 2026
Food and drink brands can reinforce emotional connections at the dinner table and beyond
Graph 27: how people talk about food and drink with family/friends, by age of children in the household, 2026
Communication preferences for friends and family
Constant companionship makes instant messaging as popular as in-person meet-ups
Facilitate shared moments dedicated connection to boost wellness
Digital communications are popular across the generations
Graph 28: preferred ways to keep in touch with family and friends, by generation, 2026
Communication preferences for business and service providers
Digital communications have firmly overtaken mail as the preferred method for professional communication
Instant messaging with businesses appeals to young customers
In person contact can develop brand affinity, but not at the cost of convenience
AI and human connection
Maintaining a human presence in customer service will become a key brand differentiator
Graph 29: agreement with the statement “I would choose a business with human customer service staff over one that used AI for customer service”, by generation
Promote analogue moments to avoid digital fatigue
From business efficiency to personal guides
Most Gen Z and Younger Millennials are open to AI advice on personal issues
CONSUMER SPENDING CATEGORIES
Alcoholic drinks through retail
The five-year outlook for alcoholic drinks through retail
Market size and forecast for alcoholic drinks through retail, 2019-30
Graph 30: market size and forecast for consumer spending on alcoholic drinks through retail, 2019-30
Market size and forecast for alcoholic drinks through retail, 2019-30, current and constant prices
Alcoholic drinks through retail market – past, present and future
Value sales growth accelerates, driven by inflation
Opportunities
Alcohol moderation and income squeeze pose threats
The future of alcoholic drinks through retail
Meet the expert
Beauty and personal care
The five-year outlook for beauty and personal care
Market size and forecast for beauty and personal care, 2019-30
Graph 31: market size and forecast for consumer spending on beauty and personal care, 2019-30
Market size and forecast for beauty and personal care, current and constant prices, 2019-30
Beauty and personal care market – past, present and future
Innovation is imperative to growth
Opportunities
The market is more fragmented than ever before
The future of beauty and personal care
Meet the expert
Fashion
The five-year outlook for fashion
Market size and forecast for fashion, 2019-30
Graph 32: market size and forecast for consumer spending on fashion, 2019-30
Market size and forecast for fashion, current and constant prices, 2019-30
Fashion market – past, present and future
Soft growth expected for fashion
Opportunities
Impact of changes in consumer lifestyles on fashion
The future of fashion
Meet the expert
Food through retail
The five-year outlook for food through retail
Market size and forecast for food through retail, 2019-30
Graph 33: market size and forecast for consumer spending on food through retail, 2019-30
Market size and forecast for food through retail, current and constant prices, 2019-30
Food through retail market – past, present and future
Higher prices will be main driver of value growth in food through retail
Opportunities
Impact of changes in consumer lifestyles on food through retail
The future of food through retail
Meet the expert
Foodservice
The five-year outlook for the foodservice market
Market size and forecast for the foodservice market, 2019-30
Graph 34: market size and forecast for consumer spending on foodservice, 2019-30
Market size and forecast for the foodservice market, current and constant prices, 2019-30
Foodservice market – past, present and future
The foodservice market grapples with inflation and demand for value
Opportunities
Hybrid service, earlier dining and satiety-led demand reshape foodservice expectations
The future of foodservice
Meet the expert
Holidays
The five-year outlook for holidays
Market size and forecast for holidays, 2019-30
Graph 35: market size and forecast for consumer spending on holidays, 2019-30
Market size and forecast for holidays, current and constant prices, 2019-30
Holiday market – past, present and future
Rising prices see strong value growth
Opportunities
Experience-led travel unlocks higher spend
The future of holidays
Meet the expert
Home and garden
The five-year outlook for home and garden
Market size and forecast for home and garden, 2019-30
Graph 36: market size and forecast for consumer spending on the home, 2019-30
Market size and forecast for home and garden, current and constant prices, 2019-30
Home and garden market – past, present and future
Modest growth is expected for the coming years
Opportunities
Impact of changes in consumer lifestyles on home and garden
The future of home and garden
Meet the expert
Household care
The five-year outlook for household care
Market size and forecast for household care, 2019-30
Graph 37: market size and forecast for consumer spending on household care products, 2019-30
Market size and forecast for household care, current and constant prices, 2019-30
Household care market – past, present and future
Household care expected to continue with stable growth
Opportunities
Safety and environmental expectations influence the category
The future of household care
Meet the expert
Housing
The five-year outlook for housing
Market size and forecast for housing, 2019-30
Graph 38: market size and forecast for consumer spending on housing, 2019-30
Market size and forecast for housing, current and constant prices, 2019-30
Housing market – past, present and future
Housing costs remain on an upward path over the next five years
Opportunities
Impact of changes in consumer lifestyles on housing spend
The future of housing
Meet the expert
Insurance
The five-year outlook for insurance
Market size and forecast for insurance, 2019-30
Graph 39: market size and forecast for consumer spending on insurance, 2019-30
Market size and forecast for insurance, current and constant prices, 2019-30
Insurance market – past, present and future
Insurance premiums set to rise modestly over the next five years
Opportunities
Impact of changes in consumer lifestyles on insurance
The future of insurance
Meet the expert
Leisure
The five-year outlook for leisure
Market size and forecast for leisure, 2019-30
Graph 40: market size and forecast for consumer spending on leisure, 2019-30
Market size and forecast for leisure, current and constant prices, 2019-30
Importance of wellbeing will reshape how leisure time is spent
The future of leisure
Meet the expert
Non-alcoholic drinks through retail
The five-year outlook for non-alcoholic drinks through retail
Market size and forecast for non-alcoholic drinks through retail, 2019-30
Graph 41: market size and forecast for consumer spending on non-alcoholic drinks through retail, 2019-30
Market size and forecast for non-alcoholic drinks through retail, 2019-30
Non-alcoholic drinks through retail market – past, present and future
The market enjoyed a summer boost in 2025
Opportunities
Impact of changes in consumer lifestyles on non-alcoholic drinks through retail
The future of non-alcoholic drinks through retail
Meet the expert
OTC remedies and pharmaceuticals
The five-year outlook for OTC and pharmaceuticals
Market size and forecast for OTC and pharmaceuticals, 2019-30
Graph 42: market size and forecast for consumer spending on OTC remedies and pharmaceuticals, 2019-30
Market size and forecast for OTC and pharmaceuticals, current and constant prices, 2019-30
OTC remedies and pharmaceuticals market – past, present and future
Strong growth for OTC remedies and pharmaceuticals
Opportunities
Impact of changes in consumer lifestyles on OTC remedies and pharmaceuticals
The future of OTC remedies and pharmaceuticals
Meet the expert
Technology and media
The five-year outlook for technology and media
Market size and forecast for technology and media, 2019-30
Graph 43: market size and forecast for consumer spending on technology and media, 2019-30
Market size and forecast for technology and media, 2019-30
Technology and media market – past, present and future
Growth driven by price rises for technology devices and price increases for services and subscriptions
Opportunities
Voice’s increasing promise, savvy shopping behaviours and concern over digital privacy
The future of technology and media
Meet the expert
Transport
The five-year outlook for transport
Market size and forecast for transport, 2019-30
Graph 44: market size and forecast for consumer spending on transport, 2019-30
Market size and forecast for transport, current and constant prices, 2019-30
Transport market – past, present and future
Transport spending continues to rise
Opportunities
On the move: how shifting lifestyles are reshaping transportation
The future of transport
Meet the expert
APPENDIX
The market
Forecast methodology
Forecast methodology – fan chart
The consumer
Consumer research questions
Consumer research methodology
UK generation groups
Abbreviations
UK consumer spending grew by an estimated 4.6% in 2025, to £1.9 trillion. Growth remains predominantly driven by inflation, and consumers continue to take a cautious approach to discretionary purchasing. Price sensitivity means competition within and between categories is high, but Brits are still keen to spend on affordable luxury.
Despite near-constant online connectivity, many Brits experience loneliness, creating a craving for more meaningful in-person connections. Brands that help bridge this divide by facilitating real-world interaction and belonging will reinforce their relevance and create loyalty with both digital and analogue consumers.
As AI becomes more commonplace, the key for brands is in finding a balance between AI-driven convenience with initiatives that provide authentic human connection. Successful brands will invest in transparent, problem-solving AI while retaining the human touch. Going too far too quickly on AI carries significant risk, as 70% of Brits already think life was better when tech played a less central role.
This Report Looks at the Following Areas:
Analysis of the UK economy, household finances and population trends impacting consumer behaviour.
Consumer spending over the last five years and forecast spend over the next five years, including segmentation by category.
British consumers’ experiences of loneliness and belonging in society.
What Brits talk to each other about, how and with whom they discuss different topics and what this means for brands.
Preferred methods of contact, both for interacting with friends/family and with businesses.
Consumer attitudes towards AI and the expected impact this will have on human connection.
Analysis of 15 consumer spending categories, including five-year forecasts for spending, key consumer trends and opportunities for brands.
Consumer Spending Categories Analysed in the Report:
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